Who Do You Serve If You Can't Find The Registered Agent

When y'all contain a business, there are plenty of requirements to go along track of.

Yous'll need to come upwards with the perfect business organisation name, decide which type of business organization entity you lot want to form, and larn business licenses to operate in a compliant manner.

Another of the important early on steps for whatever LLC, corporation, or nonprofit corporation is to designate a registered agent for your company.

But what is a registered agent, and why do you need ane?

The function of the registered agent for an American business entity is not a terribly circuitous one, simply it is an incredibly important role that requires careful consideration.

Guru Tip: Near height-rated incorporation services offer a free registered agent service when using their services to create a company online. Plus, they are fast and affordable.

Getting Started

Select your state below to learn who can be a registered agent and how to designate them. Nosotros'll evidence you how it works and what is required.

What Is a Registered Amanuensis?

A registered agent is someone who serves a business past acting as the point of contact between that business concern and the state government. Maintaining a registered agent is a legal requirement for any and all incorporated businesses.

Almost anyone can serve equally a registered amanuensis. In fact, you can serve every bit your own registered amanuensis, you can hire a business to handle this role, or you lot can designate some other individual, like a family unit member or friend, or perhaps a lawyer or accountant.

The only existent restriction is that Colorado requires an individual registered agent to be at least 18 years old, although no other state has an age restriction for this part. Regardless of who the agent is, the registered agent must be bachelor to take service of procedure during all regular business concern hours.

A registered agent has a physical address in the state, sometimes called the registered role. The agent's address cannot be a P.O. Box, because the country does not always evangelize documents through the mail. Since process tin be served at any time, information technology'south very important that the amanuensis is available from 9am to 5pm, every Monday through Friday.

That'south why many professionals recommend that you hire an agent and not serve equally your own.

What Does a Registered Agent Practice?

A registered agent accepts all formal written communications from the state government on behalf of the business.

These communications include service of process, tax documents, notifications from the Secretarial assistant of State, and more. The amanuensis then forwards any relevant documents to the business in a timely style.

This might not seem like that big of a deal — and it can fifty-fifty seem like an blowsy and unnecessary middleman role — but it is an of import function. And if yous hire a registered amanuensis service, they may also help remind you of when certain forms are due, such as the almanac report or business license renewals. Furthermore, a registered amanuensis tin can significantly cut downwards on the junk postal service yous receive, as your agent tin filter out any spam mailers delivered to your business.

Why Is a Registered Agent So Important?

Simply put, a registered agent is important considering it is a legal requirement. Yous'll encounter meaning legal trouble if you fail to designate or maintain a registered agent.

More specifically, the registered agent plays a vital function in facilitating the court organization. Here's how: the registered agent proves that legal procedure has been served. Law requires that, for a example to come up to courtroom, the plaintiff must be able to prove that there has been a adept-organized religion try to notify the other party of the arrange.

In theory, without a registered amanuensis, a business could deny that it ever received that advice, which could stall the lawsuit indefinitely. By having registered agent laws, there is proof that both parties are enlightened of the service of process — and if you're non, it is entirely your own error for skirting the rules.

Tin can You Exist Your Own Registered Agent?

The short answer? Yes. As an individual, y'all tin serve as your registered agent in all 50 states. That said, even though a member or owner of the business can operate in this office, a business organisation entity cannot act every bit its own registered agent. Your registered agent can be practically anyone as long as you lot come across a few simple requirements.

For one thing, equally nosotros mentioned in the previous section, the agent needs to be available during all standard business organization hours. In Colorado, the registered agent must besides exist a legal adult at to the lowest degree eighteen years of historic period who is a resident of the land.

Equally long as you lot also maintain a concrete street accost within the same state as your business operates, yous are legally allowed to serve as your company'south ain registered agent. However, the questions of "can you?" and "should you?" accept entirely dissimilar answers.

Should You Be Your Own Agent?

Just because you can serve as your ain registered amanuensis doesn't necessarily mean that yous should. In fact, nosotros recommend that you appoint someone else to serve equally your agent. That'due south because in that location are several drawbacks to serving equally your own agent.

For one thing, the address of your registered amanuensis is publicly available. So, let's say that y'all operate a business organisation out of your ain home, and you lot choose to human activity equally your own registered amanuensis. In this situation, you list your home address as your registered agent address, because you lot work from home.

That means that your home accost will get a thing of public record. Similarly, if yous list your business address, then legal process can be served at your business — fifty-fifty if there are employees or clients present.

The law also requires that a registered agent be available during all regular business organization hours. This means that the amanuensis is present at the registered address every Monday through Friday, from 9am until 5pm. If you serve as your own agent, this means you take to be at your accost during all regular business hours. You won't be able to go out for lunch, and y'all honestly probably shouldn't even take a bathroom break, because you would risk missing a delivery.

Just if y'all hire someone to be your amanuensis, you eliminate all of those pitfalls. The agent's address is what'due south available to the public, so they get the junk mail, while your address remains individual. A hired registered amanuensis as well allows you to come up and go from your location as needed, and y'all're also able to expand your business concern into additional states with relative ease.

Steps to Designate a Registered Amanuensis

The process of designating a registered agent isn't terribly circuitous or time-consuming. Only it is important that you complete it correctly.

If you lot're forming your business organization for the first time, incorrectly designating a registered agent volition lead to the state rejecting your filing. If you're naming a registered amanuensis for a concern that already exists, an ineligible filing will lead to your business losing its good standing with your state.

If you lot're forming a new business, the process is quite simple. All you need to practise is get the registered agent's consent to serve in the part and provide proof to the state. Different states require dissimilar forms of proof. Some only require you to include the registered amanuensis's name and accost on your germination documents, while some require the registered amanuensis's signature.

There are fifty-fifty some states that require a separate "consent of registered agent" form, and some where the agent's consent needs to be notarized. Merely make sure you follow your land'southward regulations!

If y'all're changing your registered amanuensis for an existing business organization, the process looks a flake different. In virtually states, this will involve filing a "modify of registered agent" form with the Secretary of State, including some bones information virtually your business and your chosen agent.

There are also some states that let businesses to signal a registered agent change on their almanac reports. Again, find out what your state requires and follow their instructions to the letter to ensure a compliant registered agent designation.

What Happens if I Don't Maintain a Registered Agent?

There are penalties if a business organization does not maintain a registered agent as information technology should. For example, in some states, the state will administratively dissolve your business if yous don't take an agent.

In fact, y'all won't fifty-fifty be allowed to incorporate your concern if you don't designate a registered agent, because the state volition consider your filing to be incomplete.

Similarly, if process is served on your business and you don't have an agent to notify you, then yous'll be completely blindsided. How awkward would information technology exist to not show up at your ain courtroom date? Worse than bad-mannered — it could even spell doom for your business. Maintaining an agent eliminates that possibility.

Finally, businesses without a registered agent actually lose their good standing in the land. Businesses out of compliance could, in theory, lose their corporate veil and limited personal liability, which would open upwardly their personal assets to lawsuits.

Thankfully, keeping an agent listed for your business is fairly simple (even when changing or resigning) and then you tin avoid these pitfalls.

Should I Hire a Professional Registered Agent Service?

We strongly prefer hiring a professional service to handle your registered agent role, as opposed to serving equally your ain or having a friend or family fellow member have information technology on. Another common option is to rent an attorney or accountant to be your company'due south registered agent.

However, lawyers and accountants often charge loftier prices to serve as your registered agent, and they may not be experienced in the role. That's why nosotros retrieve a professional registered agent service is the best selection.

With a professional registered agent, you'll never have to worry about missing an of import document commitment, and you won't have to concern yourself with being available at the same address during all standard business hours.

If you want to use a professional service, nosotros recommend checking out our guide to the top online registered agent services. In general, our favorite options are ZenBusiness, Northwest Registered Agent, and Incfile. All iii of these companies provide registered agent service for $119-125 per twelvemonth, and they all also provide one year of registered agent service for free if you lot buy incorporation service from them.

Heads Up: ZenBusiness and Northwest charge simply $39 for the combination of incorporation and registered agent, while Incfile charges $0 (add your country fee to these prices).

Ofttimes Asked Questions

How much does information technology cost to designate a registered amanuensis?

In that location is no fee for designating a registered agent for a new business concern, equally y'all'll betoken your agent's proper name and address on your formation paperwork. Withal, for an existing business organisation to change its registered amanuensis, some states do accuse a filing fee for the "change of registered agent" document. In about states, this fee is insignificant, well-nigh always less than $100.

What are the potential penalties for failing to designate a registered agent?

If y'all don't include registered agent information in your business formation documents, the state will turn down your filing and your business entity simply will not exist. If you fail to properly inform the state about a change of registered agent for an existing business organization, the change will not become official and the state volition go on contacting your previous registered agent, fifty-fifty if they no longer represent your business concern.

How long does it take for the state to accept my company'southward registered agent designation?

If you're forming a new business, the state will accept your registered agent designation every bit soon equally it processes your formation documents. If y'all're changing your registered agent for an existing business organization, it depends on how long it takes the state to process your "alter of registered agent" course.

Should I serve equally my own registered amanuensis, hire an attorney or accountant, or employ a registered amanuensis service?

All of these are as viable options, and legally speaking, information technology won't make a deviation which one you choose. Withal, that doesn't mean we don't have our preferences in this area. Serving every bit your own agent (or designating a trusted friend or family unit fellow member) is the cheapest pick, merely every bit we discussed earlier, this involves making your address public, receiving lots of junk post, and needing to stay at your master business accost during all standard business hours.

Hiring your attorney or auditor equally your amanuensis has the reward of designating a registered agent that you already take a concern relationship with. However, these professionals often accuse very loftier prices for registered amanuensis service, and they may non have much experience in the office. That's why nosotros prefer using a reputable online registered amanuensis service like the ones discussed earlier in this guide. They provide an ideal mix of affordability and professionalism that these other options don't accept.

Determination

A registered agent's chore might seem insignificant, but by accepting formal communications for the business organization, the agent fulfills a vital task.

The registered amanuensis ensures that the country has a means of consistently contacting an official representative of your business concern, which makes the legal system work much more smoothly for business matters than it otherwise would.

No matter which route you choose — whether you determine to designate yourself equally your company'south registered agent, designate a friend or family member, or if you choose to hire a professional registered agent service — nosotros promise that this guide helped you understand more nigh registered agents. At present you're prepared to appoint the perfect agent for your business.